3:40PM, Thu Jul 19, 2012

Bumper Sports Direct Results Put Mike Ashley On Course For £24m Payout

By Ruth Holliday Location: Mansfield

Newcastle United owner Mike Ashley is on course for a £24m payout after his sportswear empire posted strong results.

Sports Direct's full-year profits rose 17.3 percent to £162.1m in the year to April, a figure that was boosted by a booming online business.

Sales rose 13 percent to £1.84bn.

Shares in the group, over two thirds of which are owned by Mr Ashley, have risen 39 percent in 2012.

The results are a first step towards Mr Ashley receiving a multi-million pound payout.

This would come in the form of eight million shares which he would receive if the company delivers earnings of £270m in this financial year, rising to £340 million by 2015.

Sports Direct has 395 stores and owns Sports World and Lillywhites stores as well as brands including Slazenger and Dunlop.

The group posted underlying earnings of £240.5 million in the year to April 29, well ahead of the £225 million needed under the bonus scheme.

A previous scheme means 2,000 workers are due for a £15,000 windfall next month.

A new arrangement involving 3,000 workers has also passed its first earnings hurdle, fuelling hopes for 2,500 shares in 2015 and 7,500 shares two years later.

The group said current trading had been in-line with expectations and it was "very excited" by the Olympics.

Chief executive Dave Forsey said: "In spite of the low expectations surrounding England's participation in Euro 2012 and the unseasonal weather our core divisions are performing well."